CHEUNG TAK MAN DESMOND AND ANOTHER v. IP PUI LAM ARTHUR AND OTHERS

CHEUNG TAK MAN DESMOND AND ANOTHER v. IP PUI LAM ARTHUR AND OTHERS

The judge held the plaintiffs had obtained a more advantageous result because judgment awarded the contractual sum plus interest from the date of the writ and, given the pleaded case that the claim was for the partnership, any sums recovered would in law be held for the former partners (Ps' Obligation). The court...

Source-derived case information.

Citation
[2026] HKDC 163
Parties
1st Plaintiff: Cheung Tak Man Desmond; 2nd Plaintiff: Chiu Sze Wai Wilfred; 1st Defendant (former Joint and Several Trustees in Bankruptcy): IP Pui Lam Arthur and IP Pui Sum; 2nd Defendant (joint and Several Trustees): Cheng Yung Ngai Kenneth and Chan Mei Mei; 3rd Defendant: Lam Siu Sun Dennis; 4th Defendant: Lee Moses
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
13 February 2026
Case Number
DCCJ2733/2021
Procedural Posture
Civil Debt Recovery (legal Fees) / Application for Leave to Appeal Against Costs Order Following Judgment
Outcome
Application for leave to appeal dismissed; leave refused
Legal Topics
Sanctioned Offer (order 22 Rdc), Construction and Implication of Terms, Undertaking as to Custody of Funds, Discretion as to Costs, Leave to Appeal
Source Language
en
Civil Procedure Costs Partnership Law Trusts Bankruptcy Sanctioned Offer (order 22 Rdc) Construction and Implication of Terms Undertaking as to Custody of Funds +2 more

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Parties

Cheung Tak Man Desmond

1st Plaintiff

Chiu Sze Wai Wilfred

2nd Plaintiff

IP Pui Lam Arthur and IP Pui Sum

1st Defendant (former Joint and Several Trustees in Bankruptcy)

Cheng Yung Ngai Kenneth and Chan Mei Mei

2nd Defendant (joint and Several Trustees)

Lam Siu Sun Dennis

3rd Defendant

Lee Moses

4th Defendant

Procedural Posture

Civil Debt Recovery (legal Fees) / Application for Leave to Appeal Against Costs Order Following Judgment

Legal Issues

  1. 1 Whether the Judgment was more advantageous to plaintiffs than the sanctioned offer dated 27 January 2023
  2. 2 Whether the sanctioned offer could be construed or implied to contain an obligation that funds received would be held for the partnership ("Ps' Obligation")
  3. 3 Whether the court erred in exercising the costs discretion by failing to consider reasonableness of defendants' refusal to accept the sanctioned offer

Ratio Decidendi

The judge held the plaintiffs had obtained a more advantageous result because judgment awarded the contractual sum plus interest from the date of the writ and, given the pleaded case that the claim was for the partnership, any sums recovered would in law be held for the former partners (Ps' Obligation). The court rejected defendants' construction that the offer would have operated to confer absolute immediate ownership on the plaintiffs and found no relevant error in the costs exercise; defendants had conceded at hearing that indemnity costs would follow if their construction failed. Defendants' appeal lacked a reasonable prospect of success and leave was refused.

Court Disposition

Application for leave to appeal dismissed; leave refused

Orders

  • Costs order nisi that the 1st, 3rd and 4th Defendants pay costs of the action to the 1st and 2nd Plaintiffs, to be taxed if not agreed, with certificate for counsel (from trial), which shall become absolute unless varied by letter/summons within 14 days from date of order
  • Costs order nisi that the 1st, 3rd and 4th Defendants pay costs of the leave application to the 1st and 2nd Plaintiffs, with certificate for counsel, on party to party basis to be taxed if not agreed, which shall become absolute unless varied by summons within 14 days from date of order